IMF warns Asian economies against broad subsidies as Iran war strains energy supplies and budgets

IMF says subsidies could backfire amid energy shock

IMF Asia Pacific director Krishna Srinivasan urged Asian governments to keep fiscal discipline and avoid broad fuel subsidies, even as the Iran war tightens global energy supplies. With shortages linked to a logistics logjam at the Strait of Hormuz and rising oil pressures, he cautioned countries to preserve budget room for future shocks rather than rushing into costly coverage.